AI in banking, wealth management, and investment — audited against MiFID II, SR 11-7, and the EU AI Act
Traditional financial services firms face a layered compliance stack. The EU AI Act does not replace MiFID II — it sits on top of it. Both require explainability. Neither offers a model-complexity exemption.
AI systems in scope for Finance
Every system below is covered in a standard iDharma engagement. Complex or multi-system deployments are scoped on request.
Suitability algorithms and robo-advisory models — MiFID II conduct requirements, client explanation rights, and EU AI Act conformity.
Audit trail completeness, decision reconstruction, circuit-breaker documentation, and MiFID II Article 17 compliance.
Credit risk, PD/LGD models, and early-warning systems — SR 11-7 alignment and EU AI Act high-risk obligations.
Customer segmentation, churn prediction, and product-recommendation models — fair treatment, data governance, and transparency obligations.
What we audit against
Every iDharma Finance engagement maps simultaneously against the frameworks below — producing one gap register, not three separate reports.
Financial services AI making or influencing creditworthiness, insurance, and investment-suitability decisions is classified high-risk. Conformity assessment required before deployment.
Algorithmic trading firms must have effective systems and risk controls. Every algorithmic decision must be fully auditable and reconstructable.
US bank regulators confirm this guidance applies to machine-learning models. Independent validation, conceptual soundness review, and performance monitoring are baseline expectations.
How an iDharma audit works in Finance
We do not accept vendor documentation as evidence. We do not produce checkbox compliance reports. Every audit produces a named auditor, a cited methodology, and a straight answer on exactly where your AI stands — and what to fix first.
See how we work →We run a single unified audit against SR 11-7, EU AI Act Annex III, and MiFID II — not three separate workstreams.
We produce one technical documentation package that satisfies both SR 11-7 validation requirements and EU AI Act technical file requirements.
We independently verify accuracy claims by requesting test data, evaluation methodology, and ground truth construction — not just accepting vendor reports.
Our gap register is ordered by legal priority across all three frameworks simultaneously, so your remediation effort addresses the highest-exposure items first.
Explore other domains
Operating AI in banking or investment management?
The free Risk Snapshot identifies which obligations apply to your specific deployment and where your highest-priority gaps are.